Home Depot, the largest home improvement retailer, has agreed to purchase home repair and maintenance products seller, Interline Brands, for approximately $1.63 billion in cash in order to expand its Pro division, which caters to professional contractors and builders, according to Reuters.
Interline is owned by Goldman Sachs Capital Partners, P2 Capital Partners LLC and management. The Florida-based company provides facilities maintenance in addition to repair services and also offers a wide range of products to home and commercial customers through various brands such as SupplyWorks, HardwareExpress and Barnett, according to Fortune.
Home Depot has decided to cut down on store openings since the housing crash and has shifted its focus on new growth opportunities, such as online sales and installation services. The acquisition of Interline would bolster Home Depot's sales to customers in building and maintenance lines of work.
The retailer announced on Wednesday that Bill Lennie, head of its Canadian operations, will take over as the executive vice president of outside sales and service, a newly created position that will focus on the broader professional business. This is another indication that the retailer is pushing heavily into the professional contractor market. Lennie will overlook the firm's installation services, maintenance as well as repair businesses, which would include Interline, Bloomberg reported.
Home Depot said the acquisition, expected to be completed in the quarter ending Nov. 1., is likely to reflect in its earnings in the current financial year
